COVID-19 business support and disaster payments to be tax-free

August 5, 2021

The Government has introduced the Treasury Laws Amendment (COVID-19 Economic Response No. 2) Bill 2021 to make payments received by eligible businesses under certain COVID-19 business support programs from 1 July 2021 and Commonwealth COVID-19 disaster payments for the 2020-21 income year and later exempt from income tax, amongst other things.

The ATO will provide updated advice when the proposed amendments become law.